Binance has announced plans to phase out support for the BUSD stablecoin in both spot and margin trading pairs.

The trading platform is urging its users to exchange their BUSD holdings for other assets by February 2024.

Binance will delist BUSD as a loanable asset on September 6 and will stop withdrawals of Binance-peg BUSD tokens via BNB Chain, Avalanche, Polygon and Tron the following day.

In a statement, Binance said its decision to end support for the token has been influenced by Paxos' decision to halt minting of new BUSD in February.